As part of the Government’s response to the financial impact of the coronavirus, changes have been made to enable the early release of superannuation as well as drawdowns subject to eligibility. Here we outline an overview, however as always we suggest that you speak to your financial adviser.
How much am I able to access?
From 20 April 2020, you will be able to apply for an early release of up to $10,000 of your super. Furthermore, you may also be able to apply for an additional release of up to $10,000 from 1 July 2020 until 24 September 2020 when the measure ceases.
Are you eligible?
Our simple checklist below will help you determine if you are eligible to access your super. There is no minimum documentation/evidence required for meeting the following requirements.
- unemployed, or:
- eligible to receive a job seeker payment, youth allowance for jobseekers, parenting payment (which includes the single and partnered payments), special benefit or farm household allowance, or:
since 1 January 2020:
- now redundant after having received notification, or
- your working hours were reduced by 20% or more, or
- a sole trader and have had your business suspended or a reduction in turnover of 20% or more
If you answered yes to any of the above, you may be eligible to access your superannuation.
How do I apply?
There are two ways to apply:
- You can apply online through myGov at myGov.au, or
- Call the ATO on 131020, and apply by phone after confirming your identity.
During the application process you will have the opportunity to specify the amount you wish to apply for. If you hold multiple superannuation accounts, you can choose to release the amount from one account or nominate the amount you would like released from any of your accounts. There are no limitations on the amount from each account, only that the total amount doesn’t exceed $10,000 and that you only submit one application per financial year. The payment amount will be treated as non-assessable non-exempt income which means it will not be counted as income and will not be considered under any income or means test. It is also important to note that this payment will not affect Centrelink or Veteran Affairs payments.
Once your application is approved, notification will be sent directly to you and your superannuation provider who will process the payments as soon as practicable and without the need for any further documentation. You will simply wait for the funds to appear in your nominated bank account.
Superannuation drawdown changes
The government has also introduced changes to the minimum pension amounts to provide support for retirees to manage market volatility. Until the end of the 2020/21 financial year, the pension payment minimum amounts have been halved for certain accounts including Allan Gray Superannuation and Allan Gray Retirement.
You do not have to make any changes to your Allan Gray Superannuation or Allan Gray Retirement account and can continue to draw-down at your current level. If you however want to amend your pension amount and take advantage of the changes, you will need to tell us by:
- Forwarding an email request, stating clearly that you are requesting that your pension payments be reduced for the remainder of the financial year to your specified amount per month; or
- Amending your pension payments online, via the Super tab of the Secure Online Portal.
For more information
We have developed an information flyer for Allan Gray Superannuation and Allan Gray Retirement members with a host of questions and answers, please contact our Client Services team if you would like a copy on 1300 604 604 or email firstname.lastname@example.org. As always, we recommend you speak to your financial adviser or for general information only, please do not hesitate to contact our Client Services team.